American Water Enters into New Credit Facility Agreement

  American Water Enters into New Credit Facility Agreement

Business Wire

VOORHEES, N.J. -- October 31, 2012

American Water Works Company, Inc. (NYSE:AWK), the largest publicly traded
U.S. water and wastewater utility company, announced today that it has entered
into a new revolving credit agreement with $1 billion in aggregate total
commitments from a group of 14 banks. This new credit facility replaces the
company’s existing $685 million revolving credit facility, which would
otherwise mature in September 2013. This credit facility, along with the
company’s commercial paper program and cash from operations, provide for the
company’s near term financial liquidity. As of September 30, 2012, the company
had no direct borrowing under the existing credit facility.

The new facility is for general corporate finance purposes and will expire in
October 2017.

“We are pleased by the support we received from this diversified group of
banks,” said Ellen Wolf, senior vice president and CFO of American Water.
“This committed financial liquidity, along with our strong balance sheet,
allows us to continue to make investments in the water systems across our
footprint, creating value for our customers, communities and our

More details about the Credit Agreement will be detailed in the company’s 8K
filing, which will be posted at, or on the company’s Investor
Relations page at

Founded in 1886, American Water is the largest publicly traded U.S. water and
wastewater utility company. With headquarters in Voorhees, N.J., the company
employs more than 7,000 dedicated professionals who provide drinking water,
wastewater and other related services to an estimated 15 million people in
more than 30 states and parts of Canada. More information can be found at

Cautionary Statement Concerning Forward-Looking Statements

Certain statements in this press release are forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are predictions based on
our current expectations and assumptions regarding future events and relate
to, among other things, our future financial performance in 2012, including
earnings, our growth strategies, our ability to finance current operations and
growth initiatives, trends in our industry, regulatory or legal developments
or rate adjustments. Actual results could differ materially because of factors
such as the decisions of governmental and regulatory bodies, including
decisions to raise or lower rates; the timeliness of regulatory commissions’
actions concerning rates; changes in laws, governmental regulations and
policies, including environmental, health and water quality and public utility
regulations and policies; weather conditions, patterns or events, including
drought or abnormally high rainfall; changes in customer demand for, and
patterns of use of, water, such as may result from conservation efforts; our
ability to appropriately maintain current infrastructure and manage the
expansion of our business; our ability to obtain permits for projects; changes
in our capital requirements; our ability to control operating expenses and to
achieve efficiencies in our operations; our ability to obtain adequate and
cost-effective supplies of chemicals, electricity, fuel, water and other raw
materials that are needed for our operations; our ability to successfully
acquire and integrate water and wastewater systems that are complementary to
our operations and the growth of our business; cost overruns relating to
improvements or the expansion of our operations; changes in general economic,
business and financial market conditions; significant changes to our business
processes and corresponding technology; access to sufficient capital on
satisfactory terms; fluctuations in interest rates; restrictive covenants in
or changes to the credit ratings on our current or future debt that could
increase our financing costs or affect our ability to borrow, make payments on
debt or pay dividends; fluctuations in the value of benefit plan assets and
liabilities that could increase our cost and funding requirements; the
incurrence of impairment charges; migration of customers into or out of our
service territories; difficulty in obtaining insurance at acceptable rates and
on acceptable terms and conditions; ability to retain and attract qualified
employees; and civil disturbance, labor strikes or terrorist threats or acts
or public apprehension about future disturbances or terrorist threats or acts.

For further information regarding risks and uncertainties associated with
American Water’s business, please refer to American Water’s annual, quarterly
and periodic SEC filings. The Company undertakes no duty to update any
forward-looking statement.

Click here to subscribe to Mobile Alerts for American Water.


American Water Works Company, Inc.
Vice President, Investor Relations
Edward Vallejo, 856-566-4005
Vice President, Communications
Maureen Duffy, 856-309-4546
Press spacebar to pause and continue. Press esc to stop.